If your LLC is treated as a partnership filing a 1065, there are tax advantages of treating the LLC as an S-Corporation for tax purposes. You each could draw payroll and have 401(k) plans that the S-Corp can make contributions to up to 25% of your compensation. The company contributions would be treated as business expenses, as would your payroll of course. You could also set up an accountable plan to reimburse your for the use of your home office. The reimbursement would be tax-free to you and a business expense to the S-Corporation. You elect to be treated as an S-Corporation by filing Form 2553.
